Making the decision to open your own business is a major life event. Starting a new venture of this kind can be exciting as well as rewarding. The first step to becoming a business owner is choosing the type of company that you would like to run. This business can be something that you have wanted to start up yourself or you can go with an established franchise. Both involve various amounts of risk and can benefit you in different ways.
On average, it costs much less to start up your own business because it doesn’t involve fees that are charged by the franchise in order to use their name, logo, etc. This is one of the reasons that many individuals decide to build their own business. However, if you open a new company it will take much longer to achieve brand recognition, which can involve a good deal of time and advertising expenses. The price factor can vary significantly between a start-up business and a franchise but there is typically less risk associated with franchise ownership.
Buying a Franchise
There are numerous benefits to owning a franchise. The parent company has already eliminated a good deal of the problems that many start-ups face:
- The fact that your name will be familiar to people gives you an instant customer base that is familiar with your products and services.
- When it comes to training your employees, and setting up systems of operation, you will be guided with methods that have already been shown to be successful.
- Most aspects of the business will be set and ready to go so that you can start making money as soon as possible.
- There is more support when you buy a franchise because you will typically receive training, a detailed marketing plan and corporate assistance.
- While there might be a franchise fee to pay, a lot of that goes toward helping you build a successful business.
There are also more restrictions when it comes to running a franchise because there are rules and guidelines that must be followed. Your profitability as a business owner is directly tied to the brand of the franchise.
Starting a Small Business
There is much more risk involved when it comes to starting your own business. Oftentimes you won’t pay as much up front, but there are a lot more costs you have to put up along the way for things like marketing, health benefits, and mistakes made during the learning process. If you are successful, you will reap the full benefits of your business. If you like having the freedom to make all the decisions and are not put off by the potential for failure then this is a great option for you.
However, this freedom will come at a steeper price. Most small business owners put in much more than the typical 40 hours a week because they lack support. Competition for these small businesses is usually a franchise that has already gained consumer trust and recognition. Whichever route you decide to go with will have positives and negatives. It all comes down to what you are willing to risk and dedicate yourself to.
Author Bio: Thomas Hickman is an internet marketing director for 7-Eleven franchising opportunities. He enjoys playing with his Doberman and Chihuahua, Sonny and Spike, and connecting with nature through his outdoor endeavors.